Klumper Corporation is a diverstied manufacturer of Industrial goods. The compan

Question

Klumper Corporation is a diverstied manufacturer of Industrial goods. The company's activity-based costing system contalns the following sbr activty cost pools and actvty rates Supporting direct labor 600 per direct labor-hour $400 per machine-hour $5000 per setup $ 9000 per order Machine setups Production orders Shipments Product sustalning $1400 per shipment 84000 per product Activity data have been supplied for the following two products Number of units produced per 200 2000 year Direct labor-hours Machine-hours Machlne setups Production orders Shipments Product sustalning 80 500 100 1,500 4 1 4 1 10 Required Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. Supporting direct labor Machine process ing Machine setups Production orders Product sustaining Total overhead co

Explanation / Answer

Calculate total overhead cost :

Activity cost pool K425 M67 Supporting direct labour 480 3000 Maching processing 400 6000 Machine setups 50 200 Production orders 90 360 Shipments 14 140 Produt sustaining 840 840 Total overhead cost 1874 10540

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